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Prepare a flexible budget for 1 month showing the expected profit/loss from this online business. Assumptions Assuming the maximum number of clicks each day is

Prepare a flexible budget for 1 month showing the expected profit/loss from this online business.

Assumptions

Assuming the maximum number of clicks each day is 100, and that each advertisement click costs $0.30.

Assuming one customer is convinced to purchase the cake after every 15 clicks.

30% of each order is what Grab charges the business as a commission.

Per serving of cake for online delivery option

Price ($)

Fees for Marketing

$0.15 ((0.30*15)/30)

Fees for Platform

$12 (40*0.3)

Price of handling consumer complaints

$1.33 (40/30)

Total costs

$14.48

Assuming that the business does well. Please prepare a flexible budget for 1 month showing the expected profit/loss from this online business.

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